Asia Chip Stocks Surge on AI Boom, KOSPI Leads Markets

A surge in investor enthusiasm has propelled Asia's semiconductor stocks to the forefront of the global AI boom, transforming Seoul's KOSPI index into the world's top-performing market and prompting one South Korean chipmaker to offer workers potential bonuses of up to $680,000 by 2027.

Chip giants Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics and SK Hynix now rank as Asia's three most valuable companies, fueled by record earnings tied to surging demand for AI hardware. Samsung reported first-quarter profits that rose eightfold to 57.2 trillion won ($49.9 billion), with chips accounting for 94 percent of the total after revenues in that segment jumped nearly 50 times from the prior year. The KOSPI benchmark has doubled in just over six months, drawing frenzied buying from retail and institutional investors alike.

South Korean retail investors, nicknamed "ants" for their collective activity, set a record with 25 trillion won in leveraged KOSPI purchases in late April, reflecting widespread fear of missing out. Samsung's shares more than doubled this year, crossing the $1 trillion market capitalization mark this week and becoming only the second Asian firm to...